3 Tips from the Wealthy for Purchasing Property
Purchasing property is a complex procedure for most people. From looking at numerous properties, applying for mortgages, making offers, and closing on the property you finally choose, there are a multitude of details involved.
If you’re looking to purchase a new property, here are 3 tips from the wealthy for purchasing property.
(1) Choosing the Right Mortgage
The best mortgage for you depends not only on your own unique financial situation, but also on the economy and mortgage rates available to you when you purchase your property.
Traditionally, we think of mortgages as 30 year fixed rate loans. However, that is not the only mortgage option available. Adjustable rate mortgages are also an option for many families.
Given our current economic situation, adjustable rate mortgages are at historic lows. Talk to your trusted mortgage broker about which option is best for your family.
(2) Protecting Your Privacy
When you are looking to keep your address private, you generally have 2 options: (1) titling the property in a limited liability company (LLC), or (2) titling the property into a Trust.
A Trust preserves your privacy because the title of the Trust, not the name of the property owners, will show in the land records. Additionally, a Trust allows you to name someone to inherit the property when something happens to you.
For more information on the benefits of Trusts, click here.
An LLC is a legal business entity. Usually, the managing member or members are named on the state’s records with the Secretary of State. So, if you choose to use this method, consider a third party registered agent.
(3) Getting the Right Insurance
Any time you buy property, it is advisable, and often required by mortgage lenders, to get insurance coverage for the property. The right insurance broker can counsel you as to the right coverage for your property.
Buying property can be intimidating, but following these 3 tips can make your purchase more successful.